1. Field of the Invention
The invention relates generally to check and remittance payment processing. More specifically, the invention relates to processing both stranded payments and lockbox payments at the same designated payment location. Stranded check and remittance payments are remotely captured, and then processed together with lockbox payments at the designated payment location, and using the same overall process flow.
2. Description of the Related Art
A critical function of any business is receiving payments for goods and services. One way businesses accomplish this function is through the services of lockbox processors (e.g. retail lockbox processor), who receive payments for a business (a lockbox service customer), for example, at a postal box. These payments are processed, and then deposited into the customer's account. Detailed information about the payments can be provided to the customer for their accounting systems.
One type of payment is a check which people have written to pay a bill, or pay for an item. Another type of payment is a remittance that contains the appropriate payment information, for example a utility bill with credit, debit, or other payment.
In some cases, businesses receive “stranded” payments that were not sent to the designated location, such as, the retail lockbox processor. These are a category of payment processing transactions that include: misdirected lockbox payments mailed directly to the business's (biller's) corporate or service centers, walk-in payments, and field-office received payments.
These “stranded payments” can be handled in two ways. First, they may be handled by the business's staff, and then deposited locally. Second, they can be forwarded by mail packages to a lockbox processor. In the first scenario, the lockbox processor looses revenues and deposits, while the customer has increased costs for processing the items and maintaining local depository relationships. In the second scenario, the customer has increased costs related to preparing and sending the packages and the lockbox processor has higher operating costs as these packages are handled in an exception manner outside the normal workflow for processing payments.
Retail lockbox is a mature product that is offered in a competitive marketplace. With the capital investments required for the adaptation of image technology and the decrease in consumer check payments, many lockbox processors have exited the field, leaving a small number of national retail lockbox providers and various regional lockbox providers. What is needed is a way of better processing “stranded” payments to save time and costs, and well as compete more effectively in the retail lockbox marketplace. Further, by increasing volume, additional fees can be generated and cost structures can be lowered.